Underfunded VA

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As the VFW Commander-in-Chief Edward S. Banas has commented:
“The DVA [Department of Veterans Affairs] has been chronically under-funded for decades, yet thousands of dedicated medical professionals see to it that millions of veterans receive high-quality DVA health care annually at 162 hospitals across the country.” (link)

Currently, the VA (The Department of Veterans Affairs) is coping with increasing demand, both from new veterans from Iraq and Afghanistan as also from veterans now relying on VA benefits because of the economic downturn. According to the OMB report: “more veterans are seeking VA medical care services… This increased demand has put pressure on VA’s ability to care for its core-mission veteran population (military disabled, lower income, and those with special needs such as spinal cord injuries).” Although the overall VA budget (as well as discretionary spending for the VA) has gone up every year, budget increases are simply not keeping up with this increase in demand. Early this year, changes at the VA as well as the Bush Administration’s projected 2005 budget led to a storm of controversy. As the Washington Post reported in March, veterans groups have strongly criticized these new policies and the planned budget. As yet, the budget has not been introduced to Congress.

Here are some of the major issues that have concerned veterans groups.
Inadequate Increases in VA Health Care Budget
The VA’s Under Secretary testified last year that the VA health care system needs a 13-14% increase annually to maintain the services they provide now. The Administration request of $27.4 billion for 2005 provided for an increase of about 1% over the last year, and fell $2.9 billion short of the amount recommended by veterans groups (including AMVETS, the VFW, Paralyzed Veterans of America, and Disabled American Veterans) in their Independent Budget. (See the Administration and vets’ groups budget numbers side-by-side here.) Following the Bush Administration’s announcement, the House Committtee on Veteran’s Affairs released a bipartisan plan calling for at least $2.5 billion more than the Administration proposal. On Feb. 4th, 2004, VA Secretary Anthony Principi admitted to a House Committee that he had asked for “1.2 billion more than I received.” (link)

New Drug Co-Pays and Annual Fees
For veterans who are currently paying a small pharmacy co-pay (7$ per month per prescription), the co-pay would rise to $15. In addition, these vets would have to pay a $250 annual fee.

New Eligibility Requirements
As of January, 2004, the VA has also announced new rules that exclude hundreds of thousands of vets whose incomes are now considered too high to qualify for benefits. The income threshold depends on where a vet lives, but ranges between about $26,000 and $40,000 per year. The VA has not pushed any enrolled vets out of the system, but veterans who now wish to enroll will be subject to the new rules.

Hospital Closures
The VA is planning a number of hospital closures as part of a larger “restructuring” plan. Originally, the VA intended to close at least 7 hospitals, but outrage from veterans groups led to a revision of the plan by an independent commission. Now, only three hospitals are slated for closure, and two new hospitals are planned in Nevada and in Florida. However, some smaller clinics are also going to be closed or cut down. Some of these clinics are underserved. But other cutbacks, like those at the clinic in Saginaw, Michigan, have angered local politicians and veterans groups. Read the AP story for details of specific clinic closures.

What about next year?
There is some speculation that the already stretched VA may be up for cuts next year, according to White House documents released in May. These planned cuts were covered by CNN.

What should be done for the VA?
Mandatory Funding of Health Benefits: Currently, VA health benefits are part of the VA’s discretionary spending. This means that the federal government is not obliged to provide enough money for veterans' health benefits. When the federal money is inadequate, the states are left with the bill. Click here to see the funding gap in your state. Making funding for health benefits mandatory would ensure that the VA’s budget would always cover the demand. Bills have been introduced in both the House (H.R. 2318) and the Senate (S. 50) to make this possible.

Increased Funding:
Click here to view the recommended Independent Budget proposed by AMVETS, the VFW, Paralyzed Veterans of America, and Disabled American Veterans, and endorsed by 30 other groups, including Vietnam Veterans of America, the Military Order of the Purple Heart and at least 15 medical organizations.

What can you do?
The next step is to spread the word. Encourage your friends to learn about the issues. Click here to spread the word about Operation Truth. The final step is to vote! Hold our leaders accountable! Click here to register to vote if you are not already registered.